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Show RAILROAD RATES 11U1 IliullLiWLo! v Commission Refuses Horizontal Horizon-tal 15 Per Cent Raise Few Rates Increased. WASHINGTON, June 29. The Interstate Inter-state commerce commission today denied the plea of the railroads of the United States for a horizontal increase of 15 per cent in freight rates. In its decision the commission indicated indi-cated its willingness to increase class rates in the eastern district approximately approxi-mately 14 por cent. Since about one-fourth one-fourth of the freight handled Is moved under class rates, the decision virtually virtual-ly allows the eastern lines about 4 per cent increase in gross freight revenue. Increases sought in rates on coal, coke and iron ore will be granted. The commission found, as a result of extended hearings, that the carriers generally show a substantial and increasing in-creasing financial prosperity and that they have ample resources with which to conduct transportation. Lit,tlo sympathy was given the arguments argu-ments of the roads that they were victims of war prices, the commission holding that tho carriers have profited by the mobilization of troops. Suspend Proposed Tariffs The commission suspended the proposed pro-posed tariffs until October 28, but It indicated that no rehearing of tho case will be of value at this time and suggested sug-gested cancellation of the tariffs. The commission finds that tho gloomy forecasts of jeopardized incomes, in-comes, seen by railroad officials early in 1917, have not been borne out by the figures available for later months. Tho proceedings were brought 'in March, when the returns from February Febru-ary were just being made. February was one of the worst months In railroad rail-road history. The subsequent months have shown Increasing revenues, while expenses have, in many cases, failed to mount to the extent the carriers officials feared. Danger Point Far Away The decision points out that the carriers' car-riers' comparisons have been madd largely with those of 1916, which was the banner year in railroad earnings, and adds that the 1917 Income might bo considerably diminished without necessarily Indicating a danger point in earnings. Commissioner Harlan in a concurring concur-ring statement declared that should the next few months show tho railroad rail-road men's fears wore well founded, the commission would be ready to grant relief. He aso made a plea for better equipment and service. Commissioner Meyer, dissenting in part, disagreed with tho commission's holding that an emergency exists for eastern railroads of such charactor as to make it imperative to authorize even the Increased class rates sanctioned sanc-tioned by the majority. He stated that there is no proof that tho returns of the carriers of the east for this year may not be more favorable than the net returns for all but a small number of years in their entire history. Favors Congressional Inquiry Commissioner McChord, also dissenting, dis-senting, urged that Uie commission report re-port to congross the essential facts disclosed and ask that an invesUga-tion invesUga-tion be made to determine whether prices demanded of tho carriers for fuel and supplies are reasonable under present conditions. He also Intimated that government control of these commodities com-modities might afford relief. Tho commission authorized the fol- lowing raises in class rates for points north of the Ohio, east of the Mississippi. Miss-issippi. First class, from 7S.8 to 90; second class, from G8.3 to 79; third class, from 52.5 to GO; fourth class, from 36.8 to 42; fifth class, from 31.25 to 36; sixth class, from 2G.3 to 30 cents per hundred pounds. Tho commission found In general that the effects of the Adamson eight-hour eight-hour basic day and of the increased cost of fuel, supplies and materials had not affected the southern and western carriers as greatly as It affected affect-ed the eastern carriers. The commission declared its willingness willing-ness to increase class rates between New York and Chicago provided the carriers preserve established relationships relation-ships between ports and localities. Amounts ranging from 11 per cent on first-class rates down to 6 per cent on sixth-class rates will be permitted. The commission authorized roads to file "tariffs increasing existing joint ratos between rail and water carriers to a level not higher than the all-rail gates between the same points." nn |
